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We test five hypotheses on whether banks use CDS to hedge corporate loans, provide credit enhancements, obtain regulatory capital relief, and exploit banking relationship and private information. Using new data that link large banks' CDS positions and syndicated lending on individual firms, we...
Persistent link: https://www.econbiz.de/10013021173
​We test five hypotheses on whether banks use CDS to hedge corporate loans, provide credit enhancements, obtain regulatory capital relief, and exploit banking relationship and private information. Linking large banks' CDS positions and syndicated lending on individual firms, we observe strong...
Persistent link: https://www.econbiz.de/10012993300
Persistent link: https://www.econbiz.de/10013456907